CHAPTER 11 REORGANIZATION
Sub Chapter IV Railroad Reorganization
Sec. 1165. Protection of the public interest
In applying sections 1166, 1167, 1169, 1170, 1171, 1172, 1173, and
1174 of this title, the court and the trustee shall consider the public
interest in addition to the interests of the debtor, creditors, and
equity security holders.
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2641.)
Historical and Revision Notes
Section 1165 of the House amendment represents a modification of
sections 1165 and 1167 of the Senate amendment requiring the court and
the trustee to consider the broad, general public interest in addition
to the interests of the debtor, creditors, and equity security holders
in applying specific sections of the subchapter.
senate report no. 95-989
Section 1165 requires the court, in consideration of the relief to
be granted upon the filing of an involuntary petition, to take into
account the ``public interest'' in the preservation of the debtor's rail
service. This is an important factor in railroad reorganization, which
distinguishes them from other business reorganizations. Hence, this
section modifies the provisions in sections 303 and 305 that govern
generally when the business of a debtor may continue to operate, when
relief under the Act sought should be granted, and when the petition
should be dismissed.
Section 1167 [enacted as section 1165] imposes on the trustee the
obligations, in addition to his other duties and responsibilities, to
take into account the ``public interest'' in the preservation of the
debtor's rail service.